UT Buys $84m Kelvin Grove Office Building

Queensland University of Technology has snapped up an A-grade office tower in the heart of Kelvin Grove’s Urban Village.

The seven-storey building is a cornerstone building of the inner north Brisbane business hub and has gone unconditional to the main tenant, QUT, with settlement due in April 2018.

QUT leased 9,474sq m from the Queensland-based Cromwell Property Group in the building prior to the acquisition.

In an ASX statement Cromwell chief executive Paul Weightman said Musk Avenue had been a strong 10-year investment.

Related reading: European Write-downs Hits Cromwell’s Profit

“Musk Avenue is another example of Cromwell’s ability to invest wisely and actively manage our assets. We continuously review our property portfolio to deliver optimal returns for our investors,” Weightman said.

At its half-yearly results in February, Cromwell announced pro-forma gearing of 38.9 per cent exclusive of the contracted sale of the property.

The office building comprises ground floor retail, six floors of office space and 217 basement carparks.

The 14,144-square metres of net lettable area is leased to QUT, Boral Resources and three ground floor retail tenants.

The building has a 5-Star Green Star Rating and a 5.5-Star NABERS Energy Rating.

On Thursday, Singapore-based ARA Asset Management Limited picked up a 19.5 per cent stake in Cromwell in a deal worth $405 million.